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By xemarketanalysis March 15, 2019 10:54 am
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    XE Market Analysis: Brexit to be Extended Beyond March 29th

    OVERVIEW

    • British ministers voted by a 211 vote majority to delay  Brexit Article 50
    • The US dollar takes a small step back in advance of next week's meetings of the Federal Bank executives.
    • Canadian manufacturing sales in February were up sharply by 1.0%, yet the loonie remains mostly unchanged.
       

    HIGHLIGHT

    The Pound has given back some ground overnight after the UK Parliament voted with a 211 vote majority to extend article 50. The next phase of this process is for permission to be granted by the 27 member states for an extension to be granted. This has to be a unanimous decision or no decision at all.

     

    US DOLLAR

    The US Dollar is weaker ahead of the Fed meeting next week in the US. There is no change in interest rates expected, however, an insight into the Fed’s mindset on interest rates and anticipated growth in the months ahead will be the key driver for the next directional move for the greenback. 

    BRITISH POUND

    Prime Minister Theresa May has now scheduled another ‘meaningful vote’ next week to try again to get her Brexit deal approved. The pound looks like it may be set for some consolidation today as traders and investors look to take profits and square up their books for the week.

    EURO

    The Euro is steady as bond yields in Europe move higher after the European Central Bank said last week it would look at buying up European debt to artificially ‘prop up’ the European economy. The single currency has managed a decent gain against the Dollar over the last trading session. The focus now will be the Brexit extension and the potential divorce bill settlement – which may be larger than initially anticipated.

    CANADIAN DOLLAR

    Though the price for oil is increasing on the back of increased demand in countries like China and the US in January and February, the Canadian dollar remains mostly unchanged. February manufacturing sales increased by one percent yesterday, but the loonie doesn't seem overly impressed. 

    AUSTRALIAN DOLLAR

    Currency investors are hoping the planned April summit between US President Trump and Chinese President Xi. There are many points of contention which are keeping the two sides apart. Though the US President could use a win in the run-up to next year's fall elections, Trump says he is not in any rush to get a deal done. 

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